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Investor mania companies for special purposes it is accelerating in the oil-rich Gulf, where Abu Dhabi’s Mubadala sovereign wealth fund is ready to launch two Spacs and an asset manager in Dubai is raising $ 200 million to channel mergers with Middle Eastern companies.
Regional financiers have been planning for months for Spacs or white check companies to expand into the growing market before looking for a company to merge those listed on the first stock exchange.
People at the meetings said the Mubadala Investment Company was approaching potential investors in two Spacs focused on technology and healthcare.
It comes as a roadshow Mubadala, Which has had record yields and growth by 2020, is reorienting its core investment areas away from petrochemicals and manufacturing to new industries such as technology, healthcare and infrastructure. Mubadala declined to comment.
Spacs ’interest has slowed in recent months after some disappointing stock price disappointments and increased regulatory scrutiny in the US.
In the Gulf, however, investors are worried about losing profits. Sovereign funds and family offices are also keen to use the sector to boost investment in technology and other “new economies” that have advanced in the pandemic.
“Suddenly, the spaces are the taste of the month here,” said a Dubai-based financier. “There’s a niche in the Middle East, as well as in Africa and South Asia – no one is looking at those markets.”
FIM Partners, a Dubai-based border asset management company sponsored by Egyptian investment bank EFG-Hermes, is targeting investors this week to raise $ 200 million in Nasdaq’s initial public offering for Frontier Investment Corp., which could be announced. as of Thursday, people in charge of the transaction said.
The company, advised by JPMorgan, wants to join a target that works in technology, digital media, e-commerce or fintech in the Middle East, Africa, South Asia or Southeast Asia. FIM was not available for comment and JPMorgan declined to comment.
Anghami, the region’s music playback service, said in March it aimed to list the Nasdaq’s $ 220 million value in conjunction with Singapore’s Spac.
Global Spac Partners raised $ 160 million in April from Nasdaq to search for purchases in the Middle East, South Asia and Southeast Asia. The general manager of the vehicle, Bryant Edwards, previously worked in another Spac, which in 2019 merged with the Basque oil services company Brooge Energy.
Saudi Arabia’s sovereign wealth fund has invested in global Spacs and remains a major shareholder in the start-up of electric vehicles Lucid Motors, Aimed at a $ 24 billion valuation through a merger with a white check company controlled by veteran salesman Michael Klein.
Spaces targeting the Middle East faced challenges when it came to identifying sudden candidates, the Dubai chief financial officer said, but bankers are still looking at five to 10 potential targets.
Others are skeptical of the region’s ability to sustain the Spac model, saying most agreements are likely to fail.
“Anyone can do Spac. . . but all this is in implementation, ”said one investor. “The goal has to be in a sexy sector, with good growth plans and the right assessment – it’s complicated.”
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